A Study on Credit Risk Analysis in State Bank of India

Credit risk is one of the most significant risks faced by banks, arising from the failure of borrowers to meet
their repayment obligations. Effective management of credit risk is essential to ensure the stability and
profitability of banking institutions. This study focuses on analysing credit risk management practices in
the State Bank of India (SBI). The research is based on both primary and secondary data collected
through structured questionnaires and financial reports. Statistical tools such as percentage analysis,
correlation, regression, and chi-square tests were used for analysis. The study identifies key factors
influencing credit risk, including loan appraisal, monitoring systems, and repayment behaviour. The
findings reveal that effective credit risk management practices help in reducing Non-Performing Assets
(NPAs) and improving overall banking efficiency. The study concludes with suggestions to strengthen
credit evaluation and monitoring systems.
Keywords: Credit Risk Analysis, SBI, Non-Performing Assets, Risk Management, Loan Management,
Credit Assessment, Banking Sector, Financial Performance.